Post by
Oldnagger on Jun 16, 2021 5:08pm
Blackrod
A lot of investors seem to have a lack of understanding of heavy oil. Blackrod is an example. Right now Blackrod is shown as a contingent reserve due to the unpopularity of heavy oil and bitumen as feedstocks to refineries. What the environmentalists fail to mention is that as part of the coking process a lot of the carbon is removed as coke. The final product mainly gasolines and diesel etc. Are even cleaner than what is produced by normal crudes. Also heavy crudes yield a higher volume of products for the same amount of feedstock
Another development of interest is the use of solvents in the SAGD process in order to cut steam loads in half.
All in all , bitumen is increasingly a valuable commodity . IPCO has nearly 1 billion barrels of bitumen at Blackrod. Approvals are already in place for phase 1 at 20000 barrels per day and eventually up to 100000 barrels per day. With pipeline capacity becoming available and the current very favourable pricing, the future is looking very rosy !!
Comment by
ariesleaf on Jun 17, 2021 11:22am
I see my lucky $7.77 on the horizon.
Comment by
ariesleaf on Jun 21, 2021 12:42pm
Let's see if we can get over $6.00 this week.
Comment by
Oldnagger on Jun 21, 2021 10:57pm
improving conditions leave lots of head room. It is just a question of how long it will take for the market to realize the tremendous store of value. free cash flow returns will still be well north of 30 % per annum based on the present share price and commodity pricing .
Comment by
kavern23 on Jun 23, 2021 11:53am
Oldnagger...I am back into IPCO abit. The only negative with IPCO is the lack of trading volume and interest. Agree with eveything you say...IPCO is massively undervalued and not noticed by the market. Should be 6.50-7 bucks easily....
Comment by
kavern23 on Jun 23, 2021 11:53am
I fully expct a sharebuyback at min from mangement...the FCF is sick here
Comment by
Oldnagger on Jun 23, 2021 11:24pm
Welcome back !! Personally I am hoping that management will develop its huge resources at Blackrod. Probably very stupid of me since at my age I should be looking for much quicker returns but OTOH there can be a magic for growth companies that far outweighs that for cos that merely return capital to their owners !! How do I pay myself ? Margin Baby ! How stupid can one be??